LONDON TRADE REVIEW.

New Zealand Herald, Volume LX, Issue 18495, 4 September 1923, Page 8

LONDON TRADE REVIEW.

STOCK EXCHANGE STEADY. BUTTER MARKET STRONG. HIGHER ; PRICES EXPECTED. By Telesrrap'h—Press, Association-— Coriyrisht. A. and N.Z. r ■ ■'■ ... LONDON, Slept. • , : ; The turmoil of international [politics has passed unheeded on the Stock Exchange, and during the, ; past fortnight a surprising amount of business for the time of year has been done, and. prices generally have been worked up. Starling with gilt-edged securities, the firmness spread to almost all sections of the market, and, though in more speculative shares, like oils and mines, the demand comes largely' from professional operators, there has still been a fair amount of genuine investment. : The buying strength of gilt-edged securities is an outstanding feature,, and seems likely to continue for the money outlook is ■most satisfactory. V Capital issues in August were the smallest since records have been kept, amounting' to only £1,216,000, of which only £422,000 was placed on the < open market. The issues for the first. eight months of the year also show a consider able decline from ■' 1922, being just under £220,000,000, compared with £513,000,000. German Mark: in the Abyss. The foreign exchange market is most, erratic, and it seems hopeless to expect anything like stability' until the repara- '• tion .controversy is settled. The German j mark has gone deeper and deeper still, one time touching 55,000,000 to the £. The cause will apparently be found in the Reichsbank return, showing that the note circulation was doubled within tho week. The German Government expenditure between August 19 and 20 was 365,000.000 marks compared with 117,000.000 during the previous ten days. One effect of tho further demoralisation of the German currency has been to check the improvement of Belgian and French currencies, which had been showing signs of recovery, especially Belgian, which on August 281 was 95.10 to tho £, and has now relapsed to 98.65. j The opening of the London wool sales on Tuesday is awaited with keen interest, tho general impression being that Merinos and fine - crossbreds will show an advance in values. There has been improved inquiry in Bradford during the J last fortnight, apparently due to this belief. A large proportion of the offerings will consist erf wools of the Continental type. Prices for them will, of course, depend mainly on Continental. competition. Germany, Belgium, and France are expected to operate, but so far as is known American competition will, most Mkely bo limited. The butter position appears :to be strongs and there is a decidedly bullish feeling in the market. As usual at this time of the year, supplies from all sources are diminishing, and for the next two months the quantity arriving will be small. Consequently retailers are buying freely to* fill requirements daring this lean time,' and a further increase in wholesale prices is not improbable. • Advance of Cheese Prices. ■ Much, of course, depends on what effect higher prices will have on consumption. Already retail figures have been raised to Is lOd per lb., and even this price leaves little profit for the retailer, If, as seems likely, the retail price bo raised "later, to 2a/ there may *be reduced ' consumption, but the middle-class public ' has returned to the butter habit, and though the poorer working classes may be - compelled to revert to margarine, of which the very best is selling 1 at a shilling per v lb., -the consumption of butter is expected still to be sufficient to absorb the limited > quantities which will arrive until November. • '• ' S -';'

It- is ' interesting to note that Danish and New Zealand butters are now fetching practically the same price. ; Danish is quoted at 190s to 1925, New Zealand ;at 188s to 1903. <-,:-:■-*■[ ;v.^:-.;

The recent strike proved a blessing in disguise to the j cheese market, for it caused such a shortage that from the moment the delayed ships commenced to discharge buyers have been actively competing, < and contrary to general expectation a fortnight ago prices have advanced, nearly ten shillings. During the past week the strength of the market was greatly assisted by the United States purchasing large quantities of Canadian, probably as a speculation, for it is said that some of the American purchase may ultimately be shipped here. It is unfortunate that there is no Australian cheese on the market: to. benefit from enhanced values. -~:'.•'